Automobile

Schomp, Foundation Automotive buy stores in Colorado; Skyway Auto buys in Oklahoma

Colorado growth
Growing Canadian dealership group Foundation Automotive Corp. has acquired its second Colorado Hyundai dealership in about two months.

Foundation Automotive, based in Calgary, Alberta, bought Boulder Hyundai on July 29 from dealer Jeff Baca, who is retiring. The dealership has been renamed Foundation Hyundai of Boulder.

“There’s great opportunity in the Boulder area, especially with the brand, Hyundai,” said Cole Kutschinski, Foundation’s vice president of marketing. “We feel like it’s a very strong demographic with Hyundai’s new line of products. They had a great reputation in the community. Jeff was an outstanding pillar of the community. The opportunity came up, and it definitely fit within our profile.”

In May, Foundation acquired AutoNation Hyundai 104 in Northglenn, Colo., north of Denver, and moved it about 2 miles away to Westminster, renaming it Foundation Hyundai. The Boulder location is about a half-hour’s drive northwest of the Westminster store.

Foundation now has eight dealerships in Colorado.

Josh Letis, managing partner of Foundation’s Medved Autoplex — which includes Cadillac, Chevrolet and Kia stores in Wheat Ridge as well as the Hyundai dealership in Westminster — also will be managing partner of the Boulder Hyundai store.

Foundation Hyundai of Boulder is the group’s 21st overall store. It has three dealerships in Canada and 18 in the U.S. across Colorado, North Dakota, Ohio and Texas. It also owns a commercial truck upfitting center in Texas.

Foundation, led by CEO Kevin Kutschinski, Cole’s father, continues to aim for aggressive growth in 2021. The group, in a release, said it expects “to close on another 16 dealerships this year,” which would nearly double its store count.

 

Oklahoma acquisition
Skyway Auto Group, owned by lawn mower manufacturer Bad Boy Inc. founder Phillip Pulley, purchased a Honda dealership last month in Oklahoma.

Skyway on July 12 bought Honda of Bartlesville, north of Tulsa, from dealer Hal Steinke. The store has been renamed Skyway Honda.

The Skyway group also owns Skyway Buick-GMC in Joplin, Mo., which was purchased in October 2019, said Skyway CFO David Brogdon, also president of Bad Boy Mowers.

In December 2019, Houston private equity company Sterling Group bought a stake in Bad Boy of Batesville, Ark., northeast of Little Rock, Ark. Pulley still owns part of the lawn mower manufacturing company and also sits on its board, Brogdon said.

Brogdon said Skyway is looking to buy more dealerships that are “within an hour plane” ride of Little Rock. He said that he is looking at some deals but has nothing under contract.

Ozog Consulting Group represented the seller in the transaction.

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